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TERMS & CONDITIONS

§ 1 Scope

1.1 These Terms & Conditions apply to contracts involving the purchase of semen and/or the execution of inseminations (referred to as “contract” or “contracts” in the following) between Ludger Beerbaum Stables GmbH, Prozessionsweg 51b, 48477 Riesenbeck, Germany (referred to as “stallion owner” in the following) and its customer (referred to as “breeder” in the following). Once these Terms & Conditions have become a legal part of a contract, they also apply to all future contracts with the breeder, even if they are not specifically agreed upon again, unless the parties have expressly agreed otherwise.

1.2 Deviating, opposing or supplementary Terms & Conditions of the breeder will only be deemed a part of the contract if and insofar the stallion owner has expressly given his consent. The requirement of consent applies in each case, even, for example, when the stallion owner provides the services to be rendered by him in acknowledgement of the breeder’s Terms & Conditions.

§ 2 Conclusion of Contract / Breeding Certificates

2.1 The breeder can place orders for semen by phone +49-(0)5454-99656, by fax to +49-(0)5454-996 55, via email to hengste@ludger-beerbaum.de or (preferably) by using the semen order form available on the Internet at: www.ludger-beerbaum.de/en/stallions/order-form. The insemination season begins on January 15th of each year and ends on August 15th of each year – unless otherwise agreed upon between the breeder and stallion owner.

2.2 The breeder’s order constitutes the breeder’s offer to conclude a contract and should contain the following information:

Desired stallion

How insemination is to be executed (delivery of semen / insemination at the premises of the stallion owner)

Type of semen (fresh semen / frozen semen)

Delivery date

Price

Name and complete address of the mare owner as well as telephone number(s), email address

Breeding society to be notified of the insemination, breeding certificate

Exact shipping address and name of inseminating veterinarian or insemination technician as well as the following information concerning the mare: name, life number, pedigree, date of birth (in the case of mares from abroad, a copy of their certificate of pedigree/Equine Passport)

2.3 The contract goes into effect upon acceptance by the stallion owner which may be conveyed orally, in writing or in text form.

§ 3 Shipment / Delivery

3.1 Deliveries of semen always takes place on weekdays (Monday to Friday), however, deliveries may take place on Saturdays and Sundays as well, depending on when the order was received and the location of the delivery site. Orders that are received weekdays before 10:00 a.m. can – depending on the distance to the site of delivery – be delivered the same day. Orders from abroad and orders on weekends should be made by 9:00 a.m. if possible to ensure timely processing and delivery.

3.2 Shipping costs, which are due at the conclusion of a contract, are to be paid by the breeder.

3.3 Shipment takes place at the risk of the breeder, unless the breeder concluded the contract as a consumer as defined in Section 13 of the German Civil Code (BGB). The breeder is obligated to inspect the delivery immediately for visible damage and to report any such damage immediately.

3.4 The delivery times given are always non-binding unless otherwise expressly agreed upon. If stallions have a heavy breeding schedule, the stallion owner reserves the right to send a maximum of 2 insemination doses per oestrus.

3.5 Semen is shipped in Styrofoam boxes which must be returned to the stallion owner along with the cold packs and the filled out proof of semen dispatch within 10 days. If these items are not returned within the specified time, the stallion owner will charge the breeder 10.00 € per Styrofoam box. When semen is shipped abroad, a certificate issued by an official German government veterinarian will be required. In this case, the breeder will be charged a fee in the amount of 50.00 € per stallion and shipment by the stallion owner. The fee is due at conclusion of a contract.

3.6 When frozen semen is purchased, the breeder will receive 2 insemination doses. The breeder must supply the container required for the transport of frozen semen. When frozen semen is shipped abroad, a fee per stallion and shipment will be due at conclusion of the contract for a certificate issued by an official German government veterinarian in the amount of the actual costs, however, not more than 75.00 € per stallion and shipment. Upon agreement, a rental shipment container can be supplied. The rental fee is a fixed rate of 50.00 € plus 50.00 € for nitrogen which is also due at conclusion of the contract. In this case, the container must be returned 10 days after delivery.

3.7 Semen will only be shipped after the breeder has paid the stallion owner all due receivables set out in § 3 and § 4 in full at conclusion of the contract.

§ 4 Options for Provision of Service / Payment / Prices

4.1 Prices depend on the options selected by the breeder (stallion selected, fresh semen/frozen semen, delivery/insemination on the premises of the stallion owner). The options that can be selected in regard to the respectively desired stallion and prices for this are found on the Beerbaum website at www.ludger-beerbaum.de/en/stallions. All of the prices stated on the website include the respectively valid value added tax.

4.2 When ordering frozen semen, the total price is due in full at conclusion of a contract. Payment is due regardless of whether the mare comes in foal. The quantity of delivered semen is sufficient for 2 inseminations.

4.3 When ordering fresh semen (for insemination at the premises of the stallion owner as well as for delivery), the price consists of the insemination fee and the in-foal fee.

4.3.1 At the conclusion of a contract (subject to § 4.3.2), only the insemination fee is due immediately. The in-foal fee is due 45 days after delivery of the semen (or, in case of insemination at the premises of the stallion owner, after insemination), unless the breeder sends an original veterinarian attestation stating that the mare inseminated is not in foal (referred to in the following as “Attestation of No Foal”). If the stallion owner does not receive the original Attestation of No Foal by October 15th of the year the contract was concluded, the in-foal fee will be due, regardless of whether the mare is actually in foal.

4.3.2 In deviation with § 4.3.1, the insemination fee as well as the in-foal fee are immediately due after conclusion of a contract if the domicile of the breeder is in a foreign country. If the breeder sends the stallion owner an Attestation of No Foal by October 15th of the year at the latest, the stallion owner will refund the in-foal fee to the breeder – or, if the breeder desires – credit the amount towards receivables due to the stallion owner by the breeder resulting from future contracts. If the stallion owner does not receive an Attestation of No Foal by October 15th of the year the contract was concluded, the in-foal fee will not be refunded even if the mare did not come in foal.

4.3.3 When fresh semen is ordered, the insemination fee for the mare to be inseminated is due only once per insemination season. This also applies if the breeder switches the mare to be inseminated during the current season because she did not come in foal or another stallion is ordered for the mare to be inseminated (referred to as “change of stallion” in the following). However, if the stallion is changed and there is a difference in the price of the insemination fee, the respectively higher price will be due. In this case, the in-foal fee is also determined by the insemination fee for the stallion whose semen got the mare in foal, unless an Attestation of No Foal is presented by the given deadline. In the latter case, the 3rd sentence of § 4.3.3 applies.

4.4 When fresh semen is ordered, the stallion owner reserves the right under special circumstances (competitions, illness, etc.) to provide frozen semen or – in agreement with the breeder – the semen of another stallion at the station. This has no effect on the agreed remuneration.

5.1 A cervical culture (swab) is required for each insemination (should be taken during oestrus if possible).

5.2 Insemination executed at the premises of the stallion owner will only take place after a veterinarian has carried out a follicle exam and the mare teased by a stallion.

At the discretion of the stallion owner, veterinary examinations and treatments may be ordered during oestrus that are to be paid by the breeder. A limited number of guest boxes are available for mares for which the breeder will be charged 14.00 € per day.

To ensure that everything runs smoothly, the breeder is obligated to pick up his mare within two days after notification by phone. All costs incurred are to be paid when the mare is picked up.

A veterinarian may be called in by the stallion owner at the cost of the breeder if the stallion owner deems this necessary. The costs incurred will be invoiced to the breeder directly by the veterinarian who treats the mare. Whenever possible, the owner of the mare will be informed in advance. Dr. Uwe Pape from Emsdetten is the veterinarian responsible for treating mares at the Beerbaum stables.

§ 6 Special Rates for Subsequent Orders

6.1 50 % of the insemination fees paid for fresh semen that did not lead to success in the previous season and, if applicable, in the insemination season preceding the previous season (referred to in the following as “previous year’s fees”) will be credited to the in-foal fee (maximum their amount). Only the previous year’s fees from respectively consecutive seasons and only those for which the breeder is not in default will be taken into account. Contrary to the provisions set out in in the 1st sentence of § 5.1, 100 % of the first insemination fee for fresh semen will be credited towards the following season if the order on which this fee is based was placed after June 15th.

6.2 A discount of 10 % will be given on in-foal fees when performance mares, dams of licensed stallions and mares that have proved themselves in sport at third level are inseminated.

6.3 If a breeder orders semen for several mares in an insemination season and more than one mare comes in foal, the in-foal fee (if applicable, reduced according to § 6.1 and/or § 6.2), will be reduced for the first further mare in foal by 100.00 € and for the second further mare by 200.00 €.

6.4 If the breeder is in default with payments during the current insemination season, none of the special rates set out in § 6.1, § 6.2 and § 6.3 will apply.

6.5 If the amounts to be credited or discounted set out in § 6.1 to § 6.3 are higher than the in-foal fee, the amount to be credited/discounted is limited to the amount of the in-foal fee.

§ 7 Liability / Breeding Certificates

7.1 The stallion owner assumes unlimited liability for damages due to willfulness and gross negligence – regardless of legal grounds. The same applies if he has fraudulently concealed a defect or assumed a guarantee. Otherwise, in the event of simple negligence, the stallion owner is only liable for a) damage to the life, body or health of a person, and b) for damages resulting from a violation of a major contractual obligation (an obligation, the fulfillment of which enables due performance of the contract in the first place and the observance of which the contracting parties can reasonably expect and rely on); in the case of b) liability is limited, however, to replacement of typically foreseeable damage. The above stated limitations of liability also apply in case of violations of duty by persons whose culpability the stallion owner is accountable for according to statutory regulations.

7.2 Breeding certificates are to be submitted to the stallion owner at the beginning of the breeding season. Notification of insemination to the respective breeding society and issue of the breeding certificate to the breeder will only take place after all receivables due to the stallion owner have been paid in full.

§ 8 Final Provisions

8.1 The contract language is German.

8.2 Amendments to the contract must be made in writing.

8.3 The laws of the Federal Republic of Germany apply, excluding the UN Convention on the International Sale of Goods.

8.4 Place of performance for all obligations arising from this contract is Riesenbeck, Germany.

8.5 Disputes arising from this contract are exclusively under the jurisdiction of the competent courts for Riesenbeck if the breeder is a businessman, a legal entity under public law or separate fund under public law.